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In
a Wednesday evening decision, U.S. District Judge Jed Rakoff
said shareholders led by Miami and Pittsburgh pension funds
failed to first ask the bank's board directly to address their
concerns, or show it would be futile to do so, before suing.
The Manhattan-based judge said he will explain his reasoning in
due course. Rakoff did not address specific accusations about
the largest U.S. bank's relationship with Epstein.
Epstein died by suicide in a Manhattan jail in August 2019 while
awaiting trial for sex trafficking.
Lawyers for the shareholders did not immediately respond to
requests for comment.
Shareholders had accused Dimon, seven other directors and Jes
Staley, a former private banking and investment banking chief,
of having "put their heads in the sand" as Epstein used his
accounts to further abuses of young women and girls.
The so-called derivative lawsuit sought to have the defendants
or their insurers pay damages to JPMorgan, for the benefit of
shareholders.
Rakoff is also overseeing two Epstein-related lawsuits against
JPMorgan by the U.S. Virgin Islands, where the financier owned
two neighboring islands, and by Epstein victims.
The U.S. Virgin Islands is seeking at least $190 million in
damages, while a $290 million settlement with victims awaits
final court approval.
JPMorgan is suing Staley, who has expressed regret for his
friendship with Epstein and denied knowing about his sex
trafficking, to cover its losses in both lawsuits.
Staley was also Barclays' chief executive from 2015 to 2021.
The case is City of Miami General Employees & Sanitation
Employees Retirement Trust et al v Dimon et al, U.S. District
Court, Southern District of New York, No. 23-03903.
(Reporting by Jonathan Stempel in New York; Editing by Leslie
Adler)
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